Managing the negative impact of workforce diversity: The important roles of inclusive HRM and employee learning-oriented behaviors

The workforce has become more diverse than it used to be. Although organizations actively capitalize on workforce diversity to enhance team innovation and organizational performance, it is found that workforce diversity also has potential risks, among which interpersonal conflict is the most salient one. However, we still know relatively less about why workforce diversity may link to higher interpersonal conflict and, more importantly, how to mitigate the negative impact of workforce diversity. Based on the workplace diversity theories (e.g., the categorization-elaboration model), this study examined how workforce diversity was positively related to interpersonal conflict through impacting one's affective states, and to what extent this indirect effect can be weakened by organization-initiated practices (i.e., the inclusive human resources management (HRM) practices) and employee-initiated behaviors (i.e., employee learning-oriented behaviors). Using two-wave surveys from 203 employees from various organizations in China, we confirmed our hypotheses. Our results showed that perceived workforce diversity was positively related to interpersonal conflict through increasing negative affect (after we controlled for the objective diversity level calculated by the Blau index), and this indirect effect was weakened when the levels of inclusive HRM practices and employee learning-oriented behaviors were high. Our study suggests that it is important for organizations to be aware of the detrimental impact of workforce diversity. In addition, it is essential to use both the top-down (e.g., inclusive HRM practices) and bottom-up (e.g., employee learning-oriented behaviors) approaches to managing the challenges presented by diversity so as to unlock more potential of diversity in the workplace.

Does top management team diversity affect accounting quality? Empirical evidence from Germany

Earnings management decisions and ineffective monitoring activities have contributed to financial accounting scandals and reduced confidence in firms’ reporting quality among potential investors, lenders and other creditors. The implementation of an effective top management team (TMT) is considered essential in this context. It is well known that top managers have considerable discretion over firms’ financial reporting since they choose whether and how to manage earnings. However, research has yet to establish the relationship between top managers’ diversity attributes and firms’ earnings management levels. Therefore, this study analyses whether and how top managers’ nationality, gender and age diversity are associated with accounting quality. Based on a sample of German DAX 30 listed firms from 2011 to 2018, we found that diversity in TMT nationality and gender have a positive impact on accounting quality. This relationship is context-dependent and negatively moderated by the tenure of the chief financial officer. Our findings provide novel insights on accounting quality for practitioners such as investors, regulators and stock corporations. The implications of this study further advance the academic debate on diversity in TMTs and its effects on earnings management.

Examining the role of team climate, transactive memory system, and team leader humility in teams: an empirical study of Indian generational cohorts

Purpose

The study aims to define the term “generation” by proposing an integrated design based on age-period-cohort effects and by proposing an Indian generational cohort framework categorizing Indian generational cohorts into four categories, namely, Baby Boomers, GenX, GenY, and GenZ. The study further aimed to capture the existing generational differences between GenY and GenZ cohorts in the Indian teams on team climate, transactive memory system, and team leader humility.

Design/methodology/approach

For the first two objectives a literature review methodology along with the author's proposition was adopted. An integrated design was proposed by reviewing the relevant sociological literature to define generations. Thereafter, an Indian cohort framework was proposed categorizing them into four groups Baby Boomers, GenX, GenY, and GenZ. Following that, for the last objective, i.e. to identify the differences between cohorts, empirical data were collected by a structured questionnaire that was disseminated to GenY and GenZ Indian working professionals. A total of 229 responses were used for observing the differences or similarities between GenY and GenZ cohorts on the study variables by employing an independent samples t-test.

Findings

The study proposed an integrated design (age, period, and cohort effect). Following that, an Indian generational cohort's framework has been outlined categorizing Indian cohorts based on their birth years, age groups, developmental stages, formative years, major Indian historical events, and various characteristics possessed by them. Moreover, the empirical findings support the existing generational disparities and depict that GenZ holds a higher inclination towards transactive memory systems and team climate whereas GenY holds more inclination toward leader humility.

Practical implications

The study put forth its contribution to research scholars by categorizing Indian generational cohorts in a rationalized manner based on an integrated design (age-period-cohort) effect. The study would further assist concerned authorities and managers in formulating HR policies to deal with the underlying generational differences highlighted by the study.

Originality/value

As there lies a paucity of generational frameworks in the Indian context, this study is the first attempt in this direction which categorizes Indian generational cohorts based on a unique integrated design including age-period-cohort effects. In addition, the study also investigated these cohorts in Indian organizations to observe the existing variations.

Factors affecting faculty conformity in South China universities

Based on social contagion theory, this study examines the mediating role of formalization of organizational structure between organizational identification and faculty conformity. It also analyzes the moderating role of conflict management style between organizational identification and faculty conformity, and formalization of organizational structure and faculty conformity in universities in Hunan province, China. Convenience sampling was employed to select the subjects, and 1,024 Chinese faculty members including teaching staff and administrative staff were surveyed online with the questionnaire consist of organizational identification scale, organizational formalization scale, conflict management style scale, and faculty conformity scale. 1,000 valid respondents were collected and SPSS was used to analyze the data through descriptive analysis, analysis of variance, correlation analysis, and hierarchical multiple regression. The results showed that faculty members’ organizational identification had a positive effect on faculty conformity; formalization of organizational structure partially mediated the relationship between organizational identification and faculty conformity; and conflict management style positively moderated the relationship between organizational identification and faculty conformity and between formalization of organizational structure and faculty conformity. University administrators are often the initiators of conformity as they are responsible for formulating internal regulations. Therefore, they must monitor and coordinate workplace conflicts, resolve and guide faculty conformity, promote individual faculty members’ self-improvement, and foster steady organizational development.

A Systematic Literature Review about Team Diversity and Team Performance: Future Lines of Investigation

This study aims to identify the different research paths that help us understand the emerging aspects explaining how team diversity influences team performance. We also present future lines of investigation that could help us to understand this theme. The study is a systematic literature review (SLR) of articles collected from the Web of Science (WoS) database, within management or business categories, published between 1996 and 2020, considering knowledge diversity, team heterogeneity, team wisdom, cross-functional project teams, and team composition. This study enables the systematization of the existing literature. The framework presented is based on the reviewed articles and explains the articulation of the concepts of team diversity and team performance based on three literature clusters, namely: (1) Team Knowledge Diversity, (2) Diversity Effects and (3) Desirable Outcomes of Diversity. Therefore, this work enriches the systematization of the academic literature on this topic, providing an original framework and a future research agenda organized by literature cluster.

Attitude of Veterinarians Toward Self-Informed Animal Owners Affects Shared Decision Making

The aims of this study were to investigate the role of the veterinarian characteristics (e.g., age, gender, self-estimation, use of the internet), and their attitudes concerning animal owners seeking self-information. A particular focus was laid on any association between shared decision making (SDM), age and gender. In an online survey, 527 German veterinarians were asked about their attitude regarding SDM principles and their experiences with self-informed animal owners. The factors associated with veterinarians' perception of SDM were investigated in a multivariable linear regression model. A recently published structural equation model consolidated the application of SDM, empathic behavior, and veterinarians' evaluation of self-education as latent factors. Interconnected questionnaire items were processed using an exploratory factor analysis to 11 interpretable factors. Veterinarians who assumed therapy failure was associated with themselves had significantly higher rates of SDM (p = 0.002). In contrast, SDM was significantly lower (p = 0.002) if they assumed that therapy failure was due to the animal's owners. SDM was negatively associated with the perceived quality of the pet owners' self-information (p < 0.001) and if skepticism was perceived as the reason for seeking the self-information (p = 0.001). Veterinarians who advised against self-information (p = 0.006) and those who assumed that self-information of animal owners goes along with uncertainty (p = 0.001) had low SDM values (p = 0.006). Asking the animal owner for self-information (p = 0.001), and recommendations of good information sources (p = 0.022) were positively associated with SDM. Looking at the influence of age and gender on the application of SDM, older people and males rated higher. However, the evaluation of the latent factor SDM was based on the self-estimation of the participants. Assuming that younger women were less self-confident, we cannot exclude that young female participants self-evaluated their SDM skills lower than older male participants, although both groups would objectively have the same SDM level. Practitioners who have a positive attitude toward animal owners, who enjoy contact with animal owners and welcome their interest in further (self-)information, show empathic behavior, and have a positive attitude toward SDM are more likely to have better veterinarian-animal owner-relationships.

Top management team (TMT) age diversity and firm performance: the moderating role of the effectiveness of TMT meetings

Purpose

This study aims to investigate the direct effect of directors’ age diversity, and its interaction effect with the effectiveness of TMT meetings on bank performance.

Design/methodology/approach

Quantitative data were extracted from the bank’s annual reports for the six years 2011–2016. Age diversity was calculated using the coefficient of variation, and the bank’s performance was measured as return on assets and return on equity. The frequency of directors’ meetings was used as a proxy for the effectiveness of TMT meetings.

Findings

Based on the hierarchical regression analysis, the results do not support the hypothesis that there is a negative influence between age diversity on performance. However, the results support the hypothesis that age diversity has a positive effect on performance because of the high effectiveness of TMT meetings.

Research limitations/implications

The limitations of the study include the use of only samples of the banks registered with Bank Indonesia. The subsequent research could use cross-country bank samples. In addition, the research uses age-related diversity variables only. Therefore, further research could consider other types of diversity such as education, functional or tenure. Furthermore, this study is limited to the effectiveness of the director (TMT) meetings as the only moderating variable. Further research could improve on this by including other moderating variables.

Practical implications

The findings of this study indicate that the existence of age diversity in TMT will aid bank governance if it is accompanied by effective meetings among groups of directors of varying ages. This age composition of directors will make meetings more effective as rich information for strategic decisions will be generated from different points of view because of the wide spectrum of age categories, and hence, there will be a positive impact on bank performance.

Social implications

This study indicates that effective meetings of TMT groups of different ages will minimize the rise of “self-esteem”. Therefore, they will benefit the creation of a better quality relationship among TMT individuals. Accordingly, TMT within a company will have more opportunities to discuss in providing bright ideas for the company on how to innovate and create a new strategy to improve its performance.

Originality/value

This study, being the first to explore the effectiveness of TMT meetings to bank performance in the contexts of directors’ age diversity, contributes to the literature in this area, and especially to the body of knowledge about companies implementing a two-tier governance system.

A Meta-Analysis of the Relationship Between Chief Executive Officer Tenure and Firm Financial Performance: The Moderating Effects of Chief Executive Officer Pay and Board Monitoring

Prior empirical research investigating the relationship between chief executive officer (CEO) tenure and firms’ financial performance has shown inconclusive results. Based on arguments of agency and behavioral agency theories, we suggest that this relationship is nuanced and may vary depending on CEO pay and board monitoring. In response to these arguments, we meta-analytically test 385 studies ( n = 1,029,602). We find that CEO tenure is positively related to firms’ financial performance. This positive relationship is enhanced when CEOs receive higher cash compensation or hold more stock ownership. On the other hand, the above positive relationship becomes weaker when CEOs receive higher long-term incentives or when the firm has more independent board directors. These findings suggest that CEO pay and board monitoring, or agency mechanisms in general, can offer new research avenues to help explore boundary conditions of the CEO tenure and firms’ financial performance relationship.

The influence of board members with foreign experience on the timely delivery of financial reports

This study examines the effect of the presence of foreign experts on a company’s board on the important characteristic of high-quality financial reporting: timeliness. We focus on experts with foreign experience (EFEs) who are board members, in the context of a dual board model. The sample is drawn from the population of Polish nonfinancial firms listed on the Warsaw Stock Exchange during 2010–2015. For analysis, we use the generalised method of moments with fixed effects. After controlling for corporate governance and firm characteristics, we find that the presence of EFEs shortens the time necessary to deliver financial reports. Our findings enrich the knowledge on the monitoring role of EFEs in corporate governance, especially in the context of the insider model of corporate governance and a dual board structure. The findings have significant implications for policy formulation and provide evidence that the presence of EFEs on supervisory boards may lead to increased timeliness of financial reporting, thus increasing financial reporting quality.

Top management team demography and firm operating performance: a path analysis

Purpose

This paper examined the relationship between TMT demographic properties and firm performance using diversity and level variables and measuring differing constructs of firm performance representing divergent strategies.

Design/methodology/approach

Structural equation modelling was used to test the relationships between TMT demographic properties and firm performance measured as return on net operating assets (RNOA), and its disaggregates profit margin (PM) and asset turnover (ATO). Data were from 89 Finnish firms during the years 2008–2011, resulting in 320 observations.

Findings

TMT team tenure had associations with RNOA through both PM and ATO while TMT age, age diversity, firm tenure, firm tenure diversity and team tenure diversity showed paths through ATO. TMT firm tenure diversity showed effects in opposing directions through PM and ATO.

Practical implications

The results help to understand and apply the separate effects of age, firm tenure and team tenure on TMT and firm performance. These results also provide explanations on how these TMT properties affect firm performance in diverse types of firms pursuing different strategies.

Originality/value

The results suggest that both diversity and level in a measured TMT demographic property are linked with firm performance, and the effect can be in differing directions. These links go through differing paths when using disaggregated operational firm performance measures. Also, diversity in top management is not always beneficial since it can cause separation or conflict impairing performance.

Top management teams characteristics and firms performance: literature review and avenues for future research

Purpose

The purpose of this paper is to review the empirical literature on the relationship between the characteristics of the top management teams (TMTs) and the performance of entrepreneurial firms.

Design/methodology/approach

A literature review was carried out on 33 empirical studies related to TMTs and performance through analyzing and summarizing the quantitative studies conducted in this area.

Findings

The results of the literature review show that the relationship between TMTs (demographics and heterogeneity) and the performance of entrepreneurial firms is not straightforward and further investigation is still needed in this area.

Practical implications

The author maps the theoretical and empirical research of TMT demographics and heterogeneity in relation to firms’ performance and possible moderators and mediators, which govern the relationship between TMT composition and firms’ performance.

Originality/value

The author presents a detailed future research agenda for the purpose of advancing the theoretical and empirical knowledge on TMT-performance links. The review provides a comprehensive picture of TMT-firms’ performance literature and what should be done to enrich the literature.

Diversity management: a systematic review

Purpose

Diversity management plays a significant role in the organization’s outcomes. This study seeks to provide a brief review of the history of diversity management and to identify the articles published on diversity management since 1991. A systematic review of the literature has been carried out to understand the literature in more detail to know the future scope of research.

Design/methodology/approach

This study provides a comprehensive systematic review of quantitative, qualitative and theoretical studies published in leading peer-reviewed management journals from 1991 to 2018 and identifies 123 articles that fall within its established search inclusion criteria.

Findings

The literature review highlighted several aspects related to diversity management. The findings of the study revealed that there is a high concentration of researches in the USA and most number of articles published in the Academy of Management Journal. Although diversity management is a very emerging topic across the globe in management literature yet there is a lack of research in developed countries. Furthermore, most studies are found empirical in nature and the majority of the studies were published during the period of 1996–2000. This finding suggests that age, gender and racial diversity have been repeatedly discussed in diversity management research while other forms of diversity have given less attention

Originality/value

This study is one of the first systematic studies that describe the in-depth analysis of diversity management literature. The significant contribution of this study is to propose the integrated model with contemporary trends and patterns of results reported in diversity research, as well as contextual factors that have received more attention to date.

Impact of intra-group coopetitive incentives on the performance outcomes of knowledge sharing: evidence from a randomized experiment

Purpose

Knowledge sharing, as a kind of social behavior that incorporates collective intelligence to achieve a certain goal, has become a remarkable developing trend in recent years. Under the context of traditional teaching, this study aims to explore the manner in which students become effective in sharing knowledge to help optimize course design and improve our existing education.

Design/methodology/approach

Among 195 university students taking an elective, the effects of different incentives on group performance in completing tasks is explored on the basis of a randomized experiment.

Findings

Results show that intra-group cooperation can be helpful to student performance, whereas intra-group competition neither improves nor worsens student performance. The former is mainly driven by reciprocity, especially for that stimulated by inter-group competition, whereas the latter is stimulated by egoism. Thus, proper reciprocity can promote student behavior to increase voluntary contribution. In addition, intra-group differences do not interfere with group performance, especially task-oriented groups.

Originality/value

Certain suggestions are proposed to improve the curriculum design in large classrooms. Forming groups is the best way to strengthen student knowledge sharing. Within task-oriented groups, the incentives of inter-group competition can encourage students to deepen intra-group cooperation and thus effectively improve group performance under the conditions of external competition.

Top management team gender diversity and productivity: the role of board gender diversity

Purpose

Based on the significance of context, the purpose of this paper is to investigate a positive top management team (TMT) gender diversity–productivity relationship derived from the upper echelons theory, and a moderating effect of board gender diversity on the TMT gender diversity–productivity relationship derived from the relational framework.

Design/methodology/approach

The hypotheses were tested in 172 organisations listed on the Australian Securities Exchange. This research uses archival data from multiple secondary sources, with a one-year time lag between the predictor and outcome.

Findings

The findings indicate a positive effect of TMT gender diversity on employee productivity and a strong positive TMT gender diversity–employee productivity relationship in organisations with a low level of board gender diversity.

Originality/value

This study provides pioneering evidence for a positive effect of TMT gender diversity on employee productivity and for a moderating effect of board gender diversity.

Opening the Black Box: A Meta-Analytic Examination of the Effects of Top Management Team Diversity on Emergent Team Processes and Multilevel Contextual Influence

This study attempts to open the black box of top management team (TMT) diversity research by examining the following research questions: (a) how TMT diversity has effects on emergent team processes, (b) when those effects are shaped by key environmental contingencies, and (c) whether emergent team processes mediate the TMT diversity and firm performance relationship. To address these issues, we conduct a series of meta-analytic examination. First, using a sample of 208 effect sizes from 51 studies covering multiple industries across 10 countries, we test how two distinct types of diversity (task- and relations-oriented diversity) are differentially associated with two types of emergent team processes (information elaboration and social categorization) in TMTs. Second, meta-analytic regression analyses are conducted to examine how national culture (power distance and collectivism) and industry characteristics (munificence and dynamism) influence the diversity effects on emergent team processes. Third, we conduct a structural equation modeling analysis to examine the relationships among diversity (input)–information elaboration and social categorization–based processes (mediators)–firm performance (output), incorporating additional 895 effect sizes from 152 studies. Our findings indicate that while relations-oriented diversity has apparent relationships with social categorization–based processes, task-oriented diversity is strongly associated with both information elaboration and social categorization–based processes. Industry munificence and dynamism as well as collectivism in national culture moderate the diversity–social categorization relationships. The result of structural equation modeling also confirms the mediating paths of the TMT diversity–information elaboration/social categorization–performance links.

Diversity and Inequality in Management Teams: A Review and Integration of Research on Vertical and Horizontal Member Differences

The promise and perils of heterogeneity in team member characteristics has been and continues to be one of the central questions in research on management teams. We review the literature on member heterogeneity within management teams, with a focus on summarizing and integrating research on both horizontal member differences (i.e., diversity) and vertical member differences (i.e., inequality)—two streams of research that have been largely separate in past research. We find that the overwhelming majority of research on management team heterogeneity has focused on horizontal differences, though there are few clear and consistent themes in empirical findings within either stream. We also find that horizontal and vertical differences are inter-related, such that the effects of diversity can depend critically on the degree of inequality within a team, and vice versa. Moreover, we find that our ability to clearly account for the effects of vertical and horizontal differences in management teams has been limited by a confusion of definitions and conceptualizations that hamper our ability to compare theoretical arguments and empirical findings across studies. We organize various conceptualizations of heterogeneity into six types based on whether a given conceptualization is concerned with horizontal or vertical differences (diversity or inequality) and whether it is focused on the differentiation, dispersion, or concentration of member differences. The result is a framework with three types of diversity (separation, variety, and skew) and three types of inequality (stratification, steepness, and centralization). Finally, we summarize different approaches to operationalizing each of these types. The conclusions and recommendations of this review can help to bring clarity and focus to research on member heterogeneity within management teams, or groups and teams of any sort.

Board Diversity and Employee Satisfaction: The Mediating Role of Progressive Programs

While a number of previous studies have examined how the demographic diversity of corporate board members influences firm performance and diversity policies, we know little about its effects on employee attitudes. Drawing on organizational support and social exchange theories, we propose that firms with demographically diverse boards are more likely to adopt progressive management programs valued by employees and that such corporate-level practices, in turn, promote higher levels of employee satisfaction. We analyze data from 420 companies across many industries to examine the effects of corporate board diversity on employee satisfaction, and find the relationship to be mediated by the implementation of specific corporate practices. Firms with diverse boards are more likely to adopt programs that signal organizational support for employees and benevolence, and these programs foster more positive satisfaction levels.

Top management team diversity and firm performance: exploring a function of age

Purpose

Based on socioemotional selectivity theory, the authors aimed to develop and test hypotheses that identify the direct effect of top management team (TMT) age diversity on firms’ financial performance (return on equity [ROE], return on assets [ROA]) and the interactive effect of TMT age diversity and TMT average age on firms’ financial performance.

Design/methodology/approach

The paper presents results from a quantitative study of 867 TMTs in Korean manufacturing firms. Multiple hierarchical regression analysis was used to test the hypotheses.

Findings

The results show that TMT age diversity had a negative and significant main effect on ROE but not on ROA. They also indicate that the negative relationship between TMT age diversity and firm performance (ROE) was attenuated when the members of TMTs were relatively older.

Originality/value

First, this study extends existing TMT research, which mainly focuses on macro factors, such as industry and environment, by using micro factors, including TMT age diversity and TMT average age. Second, this paper combines and extends previous TMT studies, which have been dominated by either “property” or “tendency”, by examining the interactive effect of the distributional property (diversity) and central tendency (average) of TMT age on firms’ financial performance. Finally, this study indicates that socioemotional selectivity theory may be useful to explain the link between TMT age diversity and firms’ financial performance.

Career aspiration in UK veterinary students: the influences of gender, self-esteem and year of study

It is widely reported that the veterinary profession is becoming increasingly female-dominated, but there are concerns that this is not represented in positions of leadership. Although there are well-documented data describing the under-representation of women in various senior veterinary positions (academic deans, practice owners, positions on professional councils and corporate boards), it is less clear why this occurs. Although likely multifactorial, the relative contributions from a gender divide in intent to pursue leadership positions, women being dissuaded from considering senior roles, or differences in success rate (e.g. in leadership appointments), are unknown. This study was performed to investigate whether there is a gender divide among veterinary students in intent to pursue a leadership role and also to explore other influencing factors in career aspiration in veterinary students. Students from five UK veterinary schools were surveyed using an electronically distributed questionnaire. Career aspiration and leadership ambition were identified as being influenced by gender, with a greater proportion of male students (83 per cent) than female students (73 per cent) indicating they aspired to owning a practice. Career aspiration was also positively influenced by self-esteem, confidence and previously holding a position in the students' union or other club or society; however, all of these were also more apparent in male students than female students. Career aspiration also appeared to be influenced by year of study, with a decline seen at each increasing student year group, and this was unrelated to gender or self-esteem.

Unfolding the concept of a TMT-diversification strategy fit

Purpose

– This paper aims to develop a conceptual foundation of a fit between top management teams (TMTs) and their company’s corporate strategy. The authors fortify the importance of the concept of fit if the impact of upper echelons on organizational performance is trying to be explained. Yet, a constitutive concept of fit for the corporate strategy, a particularly important dimension of strategy, was previously neglected.

Design/methodology/approach

– In a conceptual/theoretical approach, the authors selected demographic managerial characteristics from previous empirical studies from the research stream on upper echelons and combined them with other promising characteristics. To analyze them in respect to the requirements of low and highly diversified companies, the authors applied the concept of the dominant logic, an important theory in the field of corporate strategy.

Findings

– The authors establish two distinct profiles of TMT members for low and high degrees of diversification and provide guidance on how to measure the TMT-corporate strategy fit – for individual TMT members and for the entire TMT – as a degree of fit on a ratio scale.

Originality/value

– This work constitutes the first exhaustive concept of a TMT-corporate strategy fit. It provides a profound research foundation for scholars in the field of TMTs and the upper echelons theory as well as a promising and complementary perspective for practitioners when assessing their TMT composition.

Cognitive Diversity to Team Outcomes

Effects of diversity in team members’ rational and intuitive cognitive styles on team outcomes were investigated in a moderated-mediation model, exploring conflict management as a moderator and cohesion as a mediator. The negative effects of diversity on cohesion were moderated by conflict management, such that diversity harmed cohesion when conflict management was low but had no effect when conflict management was high. Cohesion mediated the relationship between the interaction of cognitive diversity and conflict management on team viability but not task performance. Implications for practice include promoting cognitive diversity and conflict management training in diverse teams. Suggestions for future research include expanding the sample and utilizing causal research designs.